Getting a Mortgage During Residency

[Snowmen]

Hi everyone,

I'm currently looking at getting a mortgage to buy a residential property and so far I spoke with someone who was I referred to by my financial advisor because he was "used to working with MDs" but he mentioned only being able to use projected income for residents in their 5th year (or 2nd for FM). Now, I've read about multiple examples of residents on here getting pre-approved based on future earnings.

If any of you end up reading this, would you mind explaining what you did to make it work. It would be even better if you could give me the coordinates of the person you talked to either on this thread of via PM.

Thank you for your help!

[Persephone]

I am with Scotiabank, and they just used projected future income to approve me for a mortgage. I think I was approved for a mortgage of up to $500k. I made sure to talk to the financial advisor they had set me up with as a medical student who connected me with a mortgage advisor who works for Scotia and was familiar with their resident physician lending program. I used my LoC for half of the down payment. The other half legally has to come from "your own sources", but this can be in the form of cash gifts from your parents. They just need to sign a gift letter. And that's how I bought a house in R1. I am also in Winnipeg, so it made sense as well, because I could buy a house that was affordable. My mortgage payments are far less than what I'd pay in rent. Make sure you do that math when figuring out your price range when home shopping, so that you know what you can fit into your budget.

[shikimate]

your mortgage advisor is performing below expectations. These days Scotia and RBC and TD is fighting to death trying to court the MD crowd and they should be making it as easy as possible for you to get mortgage.

Did I mention there is a FB group on physician financial independence that tracks mortgages and has tons of mortgage talk? You should seriously consider joining it.

All I had to do was print out a copy of CaRMS salary scale and approval came within a week for a large amount I never needed all of it (back in the day).

When I finished residency I just printed off the job ad with approx remuneration figures and the mortgage agent said you can pick any number up to a million for your mortgage as staff.

Disclaimer I use scotia for my mortgage and other practice related needs.

[patersonchristian]

Hi there! I can understand why you're feeling a little confused about getting a mortgage based on your projected income as a resident. I recently went through a similar process when I was looking for a mortgage and I had a great experience with my mortgage advisor. In my case, I went for Mortgage Advice Leicester and they were fantastic in helping me understand the entire process. From what I understand, the person you spoke to might have been referring to a specific lender's policy, which can vary depending on the institution. However, there are many lenders who do offer pre-approvals based on future earnings for residents. I would recommend reaching out to other residents who have gone through the process and see who they worked with.

[Abee2023]

Do you know what the fb group is called?

On 2/19/2022 at 1:36 PM, shikimate said:

your mortgage advisor is performing below expectations. These days Scotia and RBC and TD is fighting to death trying to court the MD crowd and they should be making it as easy as possible for you to get mortgage.

Did I mention there is a FB group on physician financial independence that tracks mortgages and has tons of mortgage talk? You should seriously consider joining it.

All I had to do was print out a copy of CaRMS salary scale and approval came within a week for a large amount I never needed all of it (back in the day).

When I finished residency I just printed off the job ad with approx remuneration figures and the mortgage agent said you can pick any number up to a million for your mortgage as staff.

Disclaimer I use scotia for my mortgage and other practice related needs.

 

[rmorelan]

5 hours ago, Abee2023 said:

Do you know what the fb group is called?

 

Physician Financial Independence (Canada)

Of course you have to ask yourself WHY they are all fighting after the MD crowd and make sure you ultimately don't fall into any traps etc. 

[Linkinvoid]

Securing a mortgage during residency can be a bit of a challenge, but it's doable. Many residents get pre-approved based on their projected future earnings. It often involves finding a lender who's more flexible in considering your future income potential rather than just current earnings.
You might want to explore options with local credit unions or smaller banks, as they can sometimes be more accommodating.
And if you're still on the hunt for more info or advice on financial matters, you could check out Mortgage Advice Hull.